Japan Power Market Size (2024 - 2029)

The Japan Power Market is projected to experience growth over the forecast period, driven by factors such as the decreasing costs of solar PV systems, advancements in renewable energy technologies, and supportive government policies. However, challenges such as rising LNG costs and a high dependence on imports may impede the expansion of natural gas power generation. Despite these challenges, developments in the offshore wind power sector present promising opportunities for the market's future growth.

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Japan Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Japan Power Market Size

Japan Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Market Volume (2024) 324.21 gigawatt
Market Volume (2029) 345.42 gigawatt
CAGR 1.27 %
Market Concentration Medium

Major Players

Japan Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Power Market Analysis

The Japan Power Market size is estimated at 324.21 gigawatt in 2024, and is expected to reach 345.42 gigawatt by 2029, growing at a CAGR of 1.27% during the forecast period (2024-2029).

  • Over the medium period, the declining price and installation cost of solar PV systems, advancements in renewable energy technologies, and supportive government initiatives are expected to drive the Japanese power market.
  • On the other hand, the rising LNG costs and high reliance on imports impact natural gas power generation and are expected to hinder market growth during the forecast period.
  • Nevertheless, the progress in Japan’s offshore wind power sector is likely to create several opportunities for the Japanese power market in the future.

Japan Power Industry Segmentaion

The generation of electricity through various sources like fossil fuels, renewable energies, and nuclear energy, as well as the transmission and distribution of electricity to the end user, constitute the power market.

The Japan power market is segmented by power generation source and power transmission and distribution. By power generation source, the market is segmented into thermal, hydroelectric, nuclear, and renewable. Market sizing and forecasts were made based on electricity generation capacity and installed power generation capacity.

Power Generation Source
Thermal
Hydroelectric
Nuclear
Renewable
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Japan Power Market Size Summary

The Japanese power market is experiencing a transformation driven by advancements in renewable energy technologies and supportive government policies. The market is expected to see a gradual increase in capacity over the forecast period, with solar PV systems becoming more cost-effective and easier to install. However, challenges such as rising LNG costs and a high dependence on imports for natural gas power generation may impede growth. Despite these challenges, the offshore wind power sector presents significant opportunities for expansion. The thermal power sector remains a dominant force, with LNG-fired plants constituting a substantial portion of the total capacity. Efforts to secure long-term LNG supply contracts with countries like the United States and Oman are crucial in addressing supply concerns exacerbated by geopolitical tensions.

Japan's renewable energy sector is poised for substantial growth, supported by ambitious government initiatives aimed at achieving carbon neutrality. The country's strategic energy plans and green growth strategies emphasize increasing the share of renewables in the energy mix, with a focus on solar, wind, and tidal power. These efforts are part of a broader goal to reduce reliance on foreign energy sources and foster domestic innovation. The introduction of technologies like AutoGrid's Virtual Power Plant solution highlights Japan's commitment to optimizing renewable energy adoption and decarbonization. As the government continues to expand electricity production from renewable sources, the market is expected to witness significant advancements, driven by both policy support and technological innovation.

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Japan Power Market Size - Table of Contents

1. MARKET SEGMENTATION

  • 1.1 Power Generation Source
    • 1.1.1 Thermal
    • 1.1.2 Hydroelectric
    • 1.1.3 Nuclear
    • 1.1.4 Renewable
  • 1.2 Power Transmission and Distribution (T&D)

Japan Power Market Research FAQs

How big is the Japan Power Market?

The Japan Power Market size is expected to reach 324.21 gigawatt in 2024 and grow at a CAGR of 1.27% to reach 345.42 gigawatt by 2029.

What is the current Japan Power Market size?

In 2024, the Japan Power Market size is expected to reach 324.21 gigawatt.